Exports to Southeast Asia forecast to keep upward trend

Vietnam’s exports to many Southeast Asian countries like Malaysia, Singapore, Thailand, the Philippines, and Cambodia have grown strongly recently and are predicted to continue the upward trend in 2018.

Illustrative photo - Source: VNA

According to the Ministry of Industry and Trade (MoIT)’s Department of Asian-African Markets, Vietnam shipped US$1.2 billion worth of telephones and components, US$427 million worth of crude oil, and US$91 million worth of fibres to Thailand in 2017. The figures showed respective increases by 69 percent, 170 percent, and 31 percent.

The MoIT said many goods which are Vietnam’s strength still account for a modest market share in Thailand, noting that there are high possibilities to increase market share in Thailand for such commodities as aquatic products, fresh fruit, steel products, electrical wire and cable, and ceramic and wooden items.

There are also opportunities for Vietnam to sell more apparel and footwear to Thailand, which is switching its production to other fields with higher added value. Meanwhile, milk and dairy products, handicrafts, and furniture also hold potential for stronger export if obstacles are removed and businesses are assisted, the ministry noted.

The Asian-African Market Department said the shipment of many goods to Malaysia also posted high growth rates. Last year, Vietnam earned around US$1.17 billion from exporting computers, electronic products and components (up 36 percent from 2016), US$609 million from mobile phones and components (up 37 percent), US$228 million from crude oil (up 20 percent), and US$235 million from steel (up 105 percent) to Malaysia.

Singapore was also a strong consumer of computers and components, transport vehicles and spare parts, crude oil, and gasoline from Vietnam last year, the department added.